As expected, the FTSE dip seems to have fizzled out and we are back above the 20dma. Also, I have noticed a couple of contrarian indicators recently – a number of commentators have been talking about a correction as the S&P500 approaches 2,000, but there is no logical reason why there should be a dip just because we are getting near a psychologically significant barrier. And, the AAII sentiment survey shows bullishness well below its long-term average, all of which suggests that the FTSE-100 break-out is well and truly on.
At the risk of throwing good money after bad, I have been tempted into spread-betting again and am currently up about 80 points on my September FTSE up bet. I am maintaining my initial target of 8,500, but I will probably roll up my bet before then if the index does get over 7,000.
